International Journal of Commerce & Business Management

D. Murugananthi ¹, K. M. Shivakumar ², N. Ajjan ³, S. D. Sivakumar ¹

Affiliations
1 Department of Agricultural and Rural Management, Tamil Nadu Agricultural University, Coimbatore, T.N., IN
2 Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, T.N., IN
3 Central for Agricultural and Rural Development Studies, Tamil Nadu Agricultural University, Coimbatore, T.N., IN

Abstract

This paper examined the relationship between turmeric futures price traded in National Commodity and Derivatives Exchange (NCDEX), Mumbai and spot price prevailed in Erode market over a period of eight years (2004 -2012). It was found in the study that futures price of turmeric led the spot market in price discovery. The result showed the presence of unidirectional causality from futures price to spot price. In turmeric this implied that futures market discovered prices for turmeric and spot market prices were influenced by the futures market price. The results of Vector Error Correction model indicated that when the co-integration series was in disequilibrium in the short run, it was the spot price that makes greater adjustment in order to reestablish the equilibrium. This study also proved the occurrence of price transmission from futures market to spot prices of turmeric. The result of the study showed commodity futures market with respect to turmeric are efficient, since they played a fair role in price discovery.

Keywords

Turmeric, Co-integration, Price Discovery

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D. Ann Pauline ¹, N. Ajjan ¹

Affiliations
1 Department of Agricultural and Rural Management, Tamil Nadu Agricultural University, Coimbatore (T.N.), IN

Abstract

Two banana value chains (BVC), are illustrated based on research conducted in South India in 2014. BVC1 is the traditional value chain that sources bananas from small farmers for distribution through nearby destination markets in South India. BVC2 - the state-of- art value chain that includes farmers supplying to both major and independent retailers in South India, through a wholesale agencies with some farmer ownership. Farmers in both chains live in relative isolation from the main markets for their bananas. Prices for their bananas depend on the market prices in the city, upon which they have little control. This research paper focuses on how farmers are distanced from key markets; deal with buyers to receive fair prices. In both chains, most cash dealings between farmers and their buyers were completed through a relative/fixed pricing system with little bargaining effort from the farmers. Because of their relative seclusion, farmers relied on the buyers to offer them fair prices that reflect market movements in the city. Farmers in BVC1 based their trust on traditional ethical values to secure banana supply in the villages. In BVC2, farmers' trust in their intermediary developed over time in their relationships and by making comparisons between the prices farmers received for their bananas and the market information they have.

Keywords

Banana Value Chain, Isolation, Trust.

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